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Disclaimer

This blog is for entertainment purposes only. It is a place for me to share some of my thoughts on the market and what I think could be profitable trades. Nothing in this blog should be considered recommendations to take any action on any trade. Always seek advice from a professional financial advisor before investing any money in the stock market.

Bounce Candidates

For the most part I am a momentum trader that likes to trade in the direction of the trend. When the markets are at a very “oversold” point and the prospects of a bounce in the near term exists I need to do some extra digging to find the setups I like to trade. That I will do later tonight after Football.

In the meantime, a friend of mine shared several of his charts early last week that could prove to be very good bounce candidates. This is his excellent work and if he had a blog or twitter I would be glad to give him direct credit for it. Each of these charts have solid patterns such as forming inverse head and shoulders, as well as cup and handles. They also have oversold indicators on the daily (what doesn’t though these days) and some have closed outside the lower Bollinger Bands for one or more days. Although they aren’t my setups, some or all of these could prove to be very good trades if we get a bounce this week.